24/02/2011 - 10:11

Peet lodges solid half-year profit

24/02/2011 - 10:11

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Perth-based residential development group Peet has announced an interim profit of $22.2 million, driven largely by price and margin growth in Victoria.

Peet lodges solid half-year profit

Perth-based residential development group Peet has announced an interim profit of $22.2 million, driven largely by price and margin growth in Victoria.

Peet said it recorded a seven per cent increase in EBIT to $40.5 million over the previous corresponding period.

"The performance reflects good contributions to pre-tax earnings from all business areas resulting from an increase in the weighted average sales prices of lots over H1 2010, and ongoing operating cost efficiencies," Peet managing director Brendan Gore said.

"The geographic diversity of the group's land bank, around a third of which sits in growth corridors in the more robust Victorian market, remains a key strength and means Peet has the flexibility to respond to variations in the market in different states with of range of quality, competitively priced land."

Peet will issue a fully franked interim dividend of 4 cents per share on April 20.

The developer recorded 1,179 lot sales across its owned and managed projects over the half year, down from 1,407 in the first half of financial year 2010 because of planning and approvals delays and the withdrawal of first homebuyers.

"However, the reduction in the number of sales was, in part, offset by a 7 per cent increase in the weighted average price of lots sold during the half, on the back of continued activity in the market from investors and upgraders," Peet said.

The gross value of sales across the Group during the first half totalled $256.7 million

On December 31, Peet's land bank stood at 47,100 lots with a completion value of $6.9 billion.

Peet said it would launch seven new development projects across Australia during the second half of the financial year.

"Peet will continue to focus on our core strengths and key markets - the lower and middle market segments, which are most likely to benefit from population growth and urban expansion," Mr Gore said.

"We will continue to address the vexing issue of affordability with a good mix of quality product in key growth corridors and a continuing focus on business efficiency."

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